Shelly Group (SLYG) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 grew 47.2% year-over-year to €65 million, with all regions outperforming market averages.

• EBIT increased 29.2% to €15.4 million, with a nine-month EBIT margin of 23.6%, slightly below the midterm target due to one-time effects.

• Net income rose 38.5% year-over-year to €13.8 million, with a net income margin of 21.2%.

• Over 18 million devices sold since 2018, with 8 million in the last 12 months; cloud users reached 1.7 million, up 570,000 year-over-year.

• Confirmed 2024 guidance: €105 million revenue and €26 million EBIT; 2026 targets remain €200+ million revenue and €50+ million EBIT.

Financial highlights

• Revenue up 47.2% year-over-year to €65 million for the first nine months.

• EBIT margin at 23.6% for the period; Q3 EBIT margin at 20% due to sell-out and marketing activities.

• Net income margin at 21.2%, boosted by the sale of the office building.

• Cash position at €11.4 million end of September, down from €18.1 million the previous year, reflecting investments and dividend payments.

• Inventory increased by €12.7 million to €22 million, mainly to support new product generations and seasonal demand.

Outlook and guidance

• Confident in achieving 2024 guidance of €105 million revenue and €26 million EBIT.

• 2026 targets reaffirmed: €200+ million revenue and €50+ million EBIT.

• Expectation of strong Q4 performance, well-prepared for Black Friday and Christmas.

• Regional expansion, especially in the U.K. and Nordics, expected to drive future growth.

• Measures underway to optimize working capital and reduce inventory in 2025.